Samson Mow says Bitcoin will hit $1 million this year amid unprecedented demand

CEO Samson Mow on Jan. 3 said Bitcoin is on track to reach $1 million per coin this year or next, based on market conditions, the upcoming halving and broader economic factors.

Mow made the statement during a podcast appearance on March 12, confirming previous predictions that Bitcoin would reach a seven-figure price level.

Mow’s optimistic stance on Bitcoin’s future comes at a time when the crypto market is witnessing an unprecedented level of interest from institutional investors, as evidenced by the involvement of entities like BlackRock and the rise of spot Bitcoin ETFs.

The Veblen effect

Mow said demand for Bitcoin is far outpacing supply – a trend that is only expected to intensify with Bitcoin’s upcoming halving, which has historically had a significant impact on the crypto’s value.

The halving will reduce the number of Bitcoins generated per block, effectively reducing Bitcoin’s new supply by 50% to 3,125 BTC per block or 400 BTC per day.

Mow believes that the halving, coupled with steady demand from ETFs – which are reportedly raking in around 22,000 BTC daily – paves the way for a substantial price increase.

In addition to the direct effects of supply and demand trends, Mow delved into more nuanced economic theories to strengthen his prediction. He discussed the “Veblen effect,” a phenomenon in which the desirability of a good increases with its price.

Mow believes that as the value of Bitcoin rises, it will become even more sought after, causing the price to rise further. This is especially important as Bitcoin approaches what he calls the “Veblen Threshold”: parity with the gold market cap, which is estimated to be around $450,000 to $500,000 per coin.

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Crossing this threshold could cause a massive shift in value from gold to Bitcoin, cementing gold’s status as ‘the new gold’.

Concerns about centralization

Mow also expressed concerns about market manipulation and the influence of big players like BlackRock becoming Bitcoin whales. He said you should always assume such entities are “bad actors.”

Mow said Bitcoin decentralization is the only way to ensure bad actors can be controlled and emphasized the importance of decentralization in mining, development and ownership to limit risks in the ecosystem.

Additionally, Mow advocated diversifying Bitcoin’s geographic footprint by onboarding nation states. He said this would balance power dynamics by pitting institutional players against sovereign entities.

Mow added that if Bitcoin becomes a focal point of competition between major institutional players and nation states, this would further fuel its rise.

Bitcoin Market Data

At the time of printing 18:58 UTC on March 13, 2024Bitcoin is number 1 in terms of market capitalization and so is its price upwards 2.57% in the last 24 hours. Bitcoin has a market capitalization of $1.44 trillion with a 24-hour trading volume of $51.15 billion. Learn more about Bitcoin ›

Summary of the crypto market

At the time of printing 18:58 UTC on March 13, 2024the total crypto market is valued at € $2.76 trillion with a 24 hour volume of $138.19 billion. Bitcoin’s dominance currently stands at 52.14%. Learn more about the crypto market ›

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